ACC files case against S Alam, 66 others

The Anti-Corruption Commission (ACC) has filed its 'largest-ever' corruption case accusing Mohammad Saiful Alam (65), the chairman of S Alam Group, and 66 other individuals, over a massive loan fraud of Tk 104.8 billion.

The ACC claims loans amounting to Tk 92.84 billion were issued to different companies under S Alam Group; and with interests and dividends, the total misappropriated sum increased to roughly Tk 104.8 billion.

According to the ACC's charge-sheet, multiple subsidiaries of S Alam Group - including S Alam Refined Sugar Industries Ltd, S Alam Steels Ltd, and S Alam Trading Company Ltd - received large loans from Islami Bank Bangladesh Ltd that violated banking regulations. The loans reportedly lacked adequate collateral, ignored high existing indebtedness, and were approved despite weak turnover and risk profiles.

The ACC alleges that the bank officials colluded and manipulated the bank's software and approvals to bypass controls. The funds were then transferred through at least 134 separate deals to the affiliated entities, such as Sonali Traders Ltd (owned by S Alam's brother) and Global Trading Corporation (another related firm), and approximately US$23.58 million (roughly Tk 2.90 billion) was sent offshore to a Singapore account - owned by one of the group's companies.

The case details list many senior banking officials as co-accused, implicating both corporate and banking sides. The ACC has invoked multiple sections of the Penal Code (409, 406, 109, 420, 467, 468, 471, 120B), the Anti-Corruption Act 1947, and the Money Laundering Prevention Act 2012 in bringing the charges.

Recovery of the funds and prosecution of the 67 accused will now be the focus of Bangladesh's largest bank fraud inquiry to date.

According to Bangladesh Bank Governor Dr Ahsan H Mansur, S Alam Group siphoned off at least $10 billion from the country's banking system. He informed it at a recent interview with the Financial Times.

tonmoy.wardad@gmail.com